Correlation Between John Hancock and Mainstay Moderate
Can any of the company-specific risk be diversified away by investing in both John Hancock and Mainstay Moderate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining John Hancock and Mainstay Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Government and Mainstay Moderate Etf, you can compare the effects of market volatilities on John Hancock and Mainstay Moderate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in John Hancock with a short position of Mainstay Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Mainstay Moderate.
Diversification Opportunities for John Hancock and Mainstay Moderate
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between John and Mainstay is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Government and Mainstay Moderate Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Moderate Etf and John Hancock is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on John Hancock Government are associated (or correlated) with Mainstay Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Moderate Etf has no effect on the direction of John Hancock i.e., John Hancock and Mainstay Moderate go up and down completely randomly.
Pair Corralation between John Hancock and Mainstay Moderate
Assuming the 90 days horizon John Hancock Government is expected to under-perform the Mainstay Moderate. But the mutual fund apears to be less risky and, when comparing its historical volatility, John Hancock Government is 1.43 times less risky than Mainstay Moderate. The mutual fund trades about -0.08 of its potential returns per unit of risk. The Mainstay Moderate Etf is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,283 in Mainstay Moderate Etf on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Mainstay Moderate Etf or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Hancock Government vs. Mainstay Moderate Etf
Performance |
| Timeline |
| John Hancock Government |
| Mainstay Moderate Etf |
John Hancock and Mainstay Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Mainstay Moderate
The main advantage of trading using opposite John Hancock and Mainstay Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock position performs unexpectedly, Mainstay Moderate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Moderate will offset losses from the drop in Mainstay Moderate's long position.| John Hancock vs. Vanguard Gnma Fund | John Hancock vs. Vanguard Intermediate Term Government | John Hancock vs. Us Government Securities | John Hancock vs. Us Government Securities |
| Mainstay Moderate vs. Us Government Securities | Mainstay Moderate vs. John Hancock Government | Mainstay Moderate vs. Blackrock Government Bond | Mainstay Moderate vs. Invesco Government Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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